Despite the pandemic of 2020’s effect on the commercial real estate market, the industrial and warehousing areas of Los Angeles seem determined to deflect major impact. According to CBRE, L.A.’s 2020 industrial market activity only dropped three percent from 2019, pre-COVID. In fact, one executive at CBRE told the media that the local market adjusted in only 30 days after the global crisis began. He further reported that the pandemic actually positively affected the market. This is great news for people looking for a small warehouse for sale, an office warehouse for lease or really any commercial warehouse for sale, particularly in fertile areas like the San Fernando Valley.
Why are the commercial and industrial real estate markets so healthy now?
The biggest reason why warehousing and industrial markets are doing so well now is the boom of eCommerce sales throughout 2020 and 2021. People had little choice but to shop online for many of their personal and business needs. This created an explosion of online sales and, in turn, a greater demand for warehousing.
Much of this demand relates to big-box fulfillment processes. Many companies suddenly needed short-term warehousing solutions, while others will ride this wave for a long time to come. This activity boosted both the demand for additional space and warehouse lease renewals. Most San Fernando Valley commercial real estate brokers have seen more requests for warehouses in their email inboxes. These include people looking for a commercial warehouse for sale, office warehouse for lease or small warehouse for sale.
Will the commercial real estate and industrial property arena continue to be hot markets?
The best news from the eCommerce boom is that most real estate experts expect industrial and warehouse markets to continue thriving, even after we can all resume normal daily lives. Instead of eCommerce sales decreasing, the expectation is for this business arena to keep increasing. This will drive the price of an office warehouse for lease upward over the coming months and years. The same will happen on the sales market, with pricing increasing for any commercial warehouse for sale, small warehouse for sale or other types of industrial properties for sale.
Prices will increase as the world goes back to pre-COVID normalcy as there has been an undersupply of these warehouse properties for many years. Because of the growing eCommerce world, demand for warehouses has not dropped during the pandemic. In essence, demand kept pace with past trends despite many businesses shutting down and cutting back in 2020 and 2021. Class-A properties are the most in-demand and the supply of these will drop even more in the near future.
All of these realities make now the time to find your ideal commercial warehouse for sale, small warehouse for sale or office warehouse for lease. Waiting until the pandemic is far in the rearview mirror will only mean you have fewer options to choose from. In addition, associated prices will undoubtedly be higher.
Why buy or lease a warehouse in the San Fernando Valley?
The San Fernando Valley, “the Valley” for locals, is one of the most lucrative areas for industrial and warehouse real estate. Here, you can find a variety of properties, your ideal commercial warehouse for sale, small warehouse for sale or even a large warehouse for sale. Leasing is also possible, whether you need a long-term, short-term, large, small or office warehouse for lease.
The San Fernando Valley of Los Angeles offers 350 square miles of real estate. With over 1.8 million residents, this area also provides unlimited business opportunities, such as for investors, partners and finding the right employees. In fact, the San Fernando Valley hosts working people from all over Los Angeles, Burbank, Calabasas, Glendale, Hidden Hills and San Fernando.
Start Your Industrial Property or Warehouse Search Now
Finding the right warehouse properties for sale or lease is easy. Simply conduct your search to review a list of available options, whether you seek an office warehouse for lease, small warehouse for sale, commercial warehouse for sale or another type of commercial property. You can also easily connect with the most qualified and experienced commercial real estate agents and brokers who can help you find your ideal property. Just reach out to us at Trading Commercial and we will be more than happy to help!